CLA-2-85:OT:RR:NC:N2:220
Robert Ducey
Boat Dealer Link
1100 University Pkwy
Sarasota, FL 34234
RE: The tariff classification of an electric outboard motor from China
Dear Mr. Ducey:
In your letter dated September 19, 2022, you requested a tariff classification ruling.
The merchandise under consideration is identified as the Joy 1.2 Electric Outboard Motor (Motor), which is described as an outboard motor with a tiller control handle, battery enclosure, a 1440 Wh lithium battery bank, a 1200 Watt electric motor, and a propeller. On the control handle is an LCD display and power on/off switch. The shaft, which extends down from the battery enclosure, is equipped with a mounting bracket, anti-ventilation plate, and skeg. The Motor is intended to be used with small watercraft for the purpose of propulsion.
The General Rules of Interpretation (GRIs) to the Harmonized Tariff Schedule of the United States (HTSUS) govern the classification of goods in the tariff schedule. GRI-1 states, in pertinent part, "For legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ." In addition, although not dispositive, the Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs.
The ENs to heading 85.01, HTSUS, provide for electric motors and electric generators. EN 85.01 (I) describes electric motors, in pertinent part, as follows:
Electric motors are machines for transforming electrical energy into mechanical power. This group includes rotary motors and linear motors.
Rotary motors produce mechanical power in the form of a rotary motion. They are of many types and sizes according to whether they operate on DC or AC, and according to the use or purpose for which they are designed. The motor housing may be adapted to the circumstances in which the motor will operate (e.g., dust proof, drip proof or flame proof motors; non-rigid mountings for belt driven motors, or for motors which will be subject to much vibration). Many motors may incorporate a fan or other device for keeping the motor cool during running. With the exception of starter motors for internal combustion engines (heading 85.11), the heading covers electric motors of all types from low power motors for use in instruments, clocks, time switches, sewing machines, toys, etc., up to large powerful motors for rolling mills, etc. Motors remain classified here even when they are equipped with pulleys, with gears or gear boxes, or with a flexible shaft for operating hand tools. The heading includes “outboard motors”, for the propulsion of boats, in the form of a unit comprising an electric motor, shaft, propeller and a rudder.
The applicable subheading for the Joy 1.2 Electric Outboard Motor will be 8501.32.2000, HTSUS, which provides for "Electric motors…: Other DC motors…: Of an output exceeding 750 W but not exceeding 75 kW: Motors: Exceeding 750 W but not exceeding 14.92 kW". The rate of duty will be 2.9%.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8501.32.2000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8501.32.2000, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at the following addresses:
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions https://www.cbp.gov/trade/remedies/301-certain-products-china
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division